Teaching Money Values Right from the Start
Establish an Allowance Framework
Set a dollar amount and a time each week for children to receive their money. A
rule of thumb is a dollar for each year (e.g., $8.00 per week for an 8 year old).
Some experts believe that allowances are given, so children have their own
money to learn to manage. Others believe in teaching the additional value that
children should learn-to-earn by fulfilling household responsibilities. In creating a
connection between doing and earning, keep responsibilities age-appropriate
(e.g., take out trash, put clothes away, keep room clean, set/clear table, feed
pets). You may need to remind your children of their responsibilities to help
them be successful.
Allocate the Money
Have your children use the LearningCents Bank to allocate their money into
SPEND, SAVE and GIVE. Your family's money values will determine how you weigh
these amounts. We found it simpler to work with dollar increments, however,
you may split the money in any way you choose --- just use the same allocations
each week.
For Example:
Option 1 places more emphasis on spending choices, while Option 3 fosters
saving for the future.
Put it into Practice
Encourage children to make thoughtful choices about how and when to spend
money. Smile as they take the money they've carefully saved and proudly put it
in their bank account. Watch with satisfaction as your children give their money
to make the world a better place.
Set a dollar amount and a time each week for children to receive their money. A
rule of thumb is a dollar for each year (e.g., $8.00 per week for an 8 year old).
Some experts believe that allowances are given, so children have their own
money to learn to manage. Others believe in teaching the additional value that
children should learn-to-earn by fulfilling household responsibilities. In creating a
connection between doing and earning, keep responsibilities age-appropriate
(e.g., take out trash, put clothes away, keep room clean, set/clear table, feed
pets). You may need to remind your children of their responsibilities to help
them be successful.
Allocate the Money
Have your children use the LearningCents Bank to allocate their money into
SPEND, SAVE and GIVE. Your family's money values will determine how you weigh
these amounts. We found it simpler to work with dollar increments, however,
you may split the money in any way you choose --- just use the same allocations
each week.
For Example:
Option 1 places more emphasis on spending choices, while Option 3 fosters
saving for the future.
Put it into Practice
Encourage children to make thoughtful choices about how and when to spend
money. Smile as they take the money they've carefully saved and proudly put it
in their bank account. Watch with satisfaction as your children give their money
to make the world a better place.
8 YR OLD Spend Save Give
OPTION 1 $5 $2 $1
OPTION 2 $4 $3 $1
OPTION 3 $3 $4 $1
OPTION 1 $5 $2 $1
OPTION 2 $4 $3 $1
OPTION 3 $3 $4 $1
